Debt Investments May Be Answer to Starting Your Small Business

April 12, 2018 - 10:34 am

The idea of starting a small business is exciting and planning out the logistics can be even more exhilarating. However, for many potential small business owners there is the challenge of financing a business. Lack of money obviously brings a small business’s progress to a halt. That is why it is imperative for potential small business owners to have a full understanding of debt investments and where they can get small business funding.


Debt investment

Money is a necessity to establish and run a company. A debt investment is ideal to help get your business off the ground. Obtain proper funding by searching for investors looking to offer a loan in exchange for interest income on the money loaned to you. Be sure you have a specific amount in mind before approaching an investor. The interest rate and length of a loan can be determined between you and your investors if there aren’t already terms set in place.


Friends or Family

Friends or family can be an excellent choice as investors of your small business. Terms of the loan would likely be determined between you and them. However, although friends and family may seem like an easy way to fund your small business, keep in mind if something were to go wrong with your business this could also affect your personal relationships.



Many traditional banks will give small business loans, but will likely require a business plan and a proven track record of success. Researching a variety of banks will help determine which bank is most likely to work with you and fund your small business while also finding the best loan terms for your small business loan.


Small Business Administration

The Small Business Administration (SBA) has many numerous programs available and works with lenders who provide loans to small businesses. The partnership makes it easier for small businesses to get loans. As always, be sure to have a fluid business plan to eloquently present to investors.

This article was written by Michelle M. Guilbeau for Small Business Pulse